2. Dunkin’ Donuts is considering further expansion in the United States. Define the management-decision problem.

In 1950, Bill Rosenberg founded the Dunkin’ Donuts chain (www.dunkindonuts.
com) by opening the first location in Quincy, Massachusetts. By 1975, 1,000 locations nationwide were grossing a collective $300 million in sales. As of 2011, there were more than 9,000 Dunkin’ Donuts stores worldwide, including more than 6,400 franchised restaurants in United States and 2,600 international shops in 31 countries. On April 28, 2010, Dunkin’ Donuts opened its first store in Moscow, Russia, marking the beginning of Dunkin’ Donuts’ plans to expand throughout Russia and Ukraine. The company clocked worldwide sales of $5.7 billion during fiscal year 2009.
This impressive growth would not have been possible without extensive marketing research and a commitment to quality. Bill Rosenberg began the culture within the company of listening to what the customer wanted and then providing it, and that tradition continues today. Marketing research in the form of focus groups and survey research revealed that customers select a coffee and donut shop based on five factors: accessibility, quality, variety, image, and affordability. The company’s business is built around these factors. From research, Dunkin’ Donuts found that its customers wanted a coffee and donut shop that was very accessible—close to work or home and easy to get to. To accompany its stand-alone locations, Dunkin’ Donuts has opened locations in Home Depot, Walmart, 7–11, and Stop &
Shop stores to add to the convenience that customers desire.